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DeFi will replace a lot of traditional finance services: Interview with Balancer

Balancer was a pioneer in the DeFi space, and is a key building block of the infrastructure. This protocol allows efficient trading by pooling crowdsourced liquidity and identifying the best price.

Data shows the platform’s growth in terms of total value over the past year.

balancer_chart
Balancer Chart. Source: Token Terminal

Before the most recent market-wide slump, which took place in May, Balancer had peaked at over $360 billion in TVL, a 450% increase in just 5 months, since January 2021.

This was also due to a massively increased user participation within the broader DeFi market , where many protocols saw a surge of their user base and other metrics.

During Bitcoin 2021 in Miami, CryptoPotato had the chance to speak with Jeremy Musighi – the Head of Growth at Balancer. We talked about the past, present and future of DeFi, Balancer, as also other important topics for this industry.

2021 Bull Run: Bitcoin Has Always Led the Crypto Markets

DeFi saw massive growth in 2021. At one point, the total value locked in various protocols across the industry peaked at over $80 billion – up 4 times from January alone.

We asked Musighi if he believes the bull market overall was the main reason for it or if it was an organic transition.

“I think that markets recognize how impactful DeFi is going to be and that it’s here to stay and I think it brought further awareness and education about how DeFi is prime to replace a lot of traditional financial services and products that we have.”

Musighi believes that the above is part and parcel of the reason for the bull. Musighi recognizes that it is a cycle.

“Investors recognize the opportunity here (in DeFi) and pour a lot of capital into it because they know how much it’s going to grow. This is what drives the bull market.

At the same time, the bull market and prices increase, bringing in more attention from other outsiders and other people who have not been involved and they get involved as well.”

He believes that Bitcoin has always been the leader in crypto markets, and that investors have a tendency to move their investments from one vertical to another .”

Balancer’s chief of growth also stated that “Bitcoin still serves as the primary reserve asset for crypto .”

balancer_cover
Jeremy Musighi, Balancer’s Head of Growth

Balancer: ‘The Most Customizable AMM’

Another thing that we were curious about is the reason for which Balancer lags behind other protocols such as Uniswap in terms of TVL.

Musighi explained to us that there are many factors that affect a product’s market fit and traction for DeFi protocols.

“One thing that’s clear about Balancer is that it has some of the best tech in the space and it’s also the most flexible and customizable Automated Market Maker (AMM) that there is. Balancer is DeFi-primitive in that it’s so flexible that it can be used in so many ways that it’s almost like a general purpose technology.”

But there’s a side to this – marketing. Although the protocol was founded in a short time ago, it has been managed almost entirely by “brilliant technical talent” but Balancer didn’t have many marketing people. “In fact, for a long period, we didn’t have any .”

.”

This is where the project still has room for growth and where the team is focusing their attention right now. Musighi says that this is one of the key factors to helping Balancer grow.

But there’s more: Musighi stated that Balancer Labs as well as the community had learned a lot by Balancer V1 being “in the wild growing as much as .”

.”

According to him, this has resulted in the successful release V2, which makes major improvements in areas like gas efficiency and UX. It also includes features that solve key market needs and stands out as an ideal solution.

He also mentioned that the transition from Balancer V1 into V2 was being done slowly and will take 6-8 weeks.

Binance Smart Chain (BSC) or Ethereum

Many decentralized AMMs, such as Balancer, and their greatest rivals Uniswap or Sushiswap, are heavily dependent on the blockchain on which they were built.

Ethereum was the most popular, but it was experiencing network congestion. This caused fees to skyrocket, and transactions to slow down. Ethereum 2.0 is a proposed solution currently in development. This will allow for the possible transition from a PoW-based consensus algorithm into a PoS one.

“I’m very optimistic about it – it’s really important. We are confident that Ethereum 2.0 will succeed. In the meantime, we always want to cater to the best interests of our users right now, not only in the future.”

Musighi stated that there are many scaling options, including layer two solutions, Ethereum sidechains and other layer ones, as well as adopting cross-chain compatible strategies. It’s also worth noting that Balancer has also launched on Polygon (a layer two solution) in aims of reducing the high gas fees.

“Those are the things that we’re thinking deeply about right now and very thoughtfully because we want to understand where we feel the future might go and how we can cater to the needs of the market in the best way possible.”

Elsewhere, we also discussed one of the hottest trends of 2021 – Binance Smart Chain (BSC). Musighi does not see it as an alternative to Ethereum. Rather, he believes that it has helped reduce Ethereum’s congestion by offloading transaction volume from the main blockchain .”

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He stated that the future and long-term would favor “the most transparent and decentralized solutions.” This is why other centralized blockchains cannot compete with the larger picture.

“If they did, they would see a massive migration of users, projects, liquidity, and volume off of Ethereum that hasn’t been happening. And that should tell you that even with its flaws and even with the areas that it needs to grow, it’s still offering so much value.”

A Crunch for Talent in DeFi

Jeremy believes DeFi is the future in finance.

“I think there’s less and less doubt about that idea in society in general today, which is of course, one of the reasons why we’ve been seeing these big bull runs.”

When asked about his biggest challenge, he stated that “bringing in different diversifications of talent into industry, making DeFi products better holistically accessible and more holistically sound .”

“I think one of the challenges that DeFi faces today is that there’s a crunch for talent because there are not enough people out there who are deeply familiar with crypto, but also have non-technical skills or even technical skills, all skills, from engineering to design, to marketing and branding and so on.”

He also spoke about the competition between DeFi (central finance) and CeFi (“centralized finance”), admitting that CeFi has “a lot of customers – they own those customer relations.” Another aspect is the front-end touch-point with digital financial service users.

This presents a tremendous opportunity for DeFi protocol, which can seamlessly integrate in the back-end because they clearly have technical advantages, but “the disadvantages of user experience design and user acquisition and mass market acceptance .”

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Ethereum

Tether launches tokens pegged to the Mexican Peso on Ethereum and Tron

Tether Launches Tokens Pegged to the Mexican Peso on Ethereum, Tron, and Polygon

Tether Operations Limited, a stablecoin issuer, has announced that it has launched a fiat-pegged token tied with the Mexican peso’s value. The team said that the MXNT tokens, which were just launched, will initially be hosted on Ethereum, Polygon and Tron.

MXNT Stablecoin is Pegged 1:1 to Mexican Peso

The stablecoin and blockchain firm Tether has revealed it has launched a new fiat-pegged token that will join the company’s suite of stablecoins. Tether has introduced MXNT, a stablecoin pegged to Mexican peso value.

Tether’s other fiat token offerings include the popular USDT, which is pegged to the U.S. dollar, and EURT, which is tied to the value of the euro. The company also offers CNHT (an offshore Chinese yuan pegged token) and tethergold XAUT (a token tied to the value one ounce fine gold).

Tether Launches Tokens Pegged to the Mexican Peso on Ethereum, Tron, and Polygon

MXNT will officially launch on Tron, Ethereum, and Polygon. Tether stated that it believes that a digital peso would be very beneficial for Mexico’s remittance sector. Tether announced on Thursday that the multibillion-dollar flow in remittances to Mexico, as well as the difficulties associated with money transfers, has created an opportunity for stablecoin adoption and usage. The company also added

The creation of MXNT puts Mexican Peso on the blockchains and provides a faster, less costly option for asset transfers.

Tether USDT is the largest stablecoin in existence today, as it currently has a market valuation of around $73.2 billion. Market capitalization of the token is 5. 77% of the $1. 27 trillion crypto economy.

Out of the $86. 43 billion in digital currency trade volume on Thursday, tether’s volume is around $45. 42 billion, or 52. 55% of today’s global trade volume. In terms of bitcoin (BTC) trading pairs, USDT is the top pair with bitcoin, capturing 55% of today’s BTC trade volumes. Tether claims that the launch of MXNT is a “test ground” for new users in Latin America’s market .”

.

Paolo Ardoino (CTO) of Tether explained during the announcement that digital currencies have been growing in Latin America. In a note to Bitcoin.com News, Ardoino stated that there has been a rise in cryptocurrency use in Latin America in the past year. “We need to expand our offerings,” he said.

The Tether CTO continues:

Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico. MXNT is a stablecoin that can reduce volatility for investors and those who want to convert assets from fiat currencies to digital currencies.

Just recently, Tether published the firm’s USDT May 2022 assurance report after the recent Terra blockchain UST fallout. Circle, the usd coin (USDC) stablecoin issuer, also released an assurance report in May and recently explained its plans to publish USDC attestation reports on a weekly basis.

What do you think about the stablecoin issuer Tether launching a token pegged to the Mexican peso? Comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Ethereum

Ethereum’s Beacon Network Signs a 7-Block Chain Organization

Ethereum’s Beacon Network Deals With a 7-Block Chain Reorganization

On May 25, seven blocks were reorganized on Ethereum’s Beacon chain at 8: 55: 23 a.m. (UTC) at block height 3,887,075 all the way to block 3,887,081. The reorganization was discovered by Martin Koppelmann who noted the “current attestation strategy of nodes should be reconsidered to hopefully result in a more stable chain.”

Ethereum’s Beacon Chain Reorgs

While all eyes were focused on Ethereum’s imminent transition to proof of stake (PoS), via The Merge, developments surrounding the transition have been intense. However, Ethereum’s Beacon Chain, which will be critical to the transition, underwent a seven-block-deep reorganization.

A blockchain reorganization is also known as a “reorg”. Nodes are given blocks from new chains while nodes have access to the old ones. In the case of Ethereum’s Beacon chain, the reorganization occurred at block height 3,887,075 to block 3,887,081.

Martin Koppelmann, the co-founder of Gnosis, noticed the event and tweeted about it on social media. “The Ethereum beacon chain experienced a 7-block deep reorg –2.5h ago,” Koppelmann said. Koppelmann stated.

This, unfortunately, shows that the analysis by [Georgios Konstantopoulos] and [Vitalik Buterin] here was too optimistic when the article claimed reorg stability will improve in PoS over PoW. In years past, we haven’t seen 7 block-reorgs on Ethereum mainnet. At this stage it is not clear if the reorg that we saw was due to an attack or simply unfortunate network conditions.

Vitalik Buterin: ‘Truth-Seeking Is More Important Than Not Giving the Wrong People Rhetorical Ammunition’

After talking about the issue on Twitter, Koppelmann remarked that some of the attention his tweet garnered, specifically from Ethereum detractors, made him regret tweeting about it. Koppelmann stated that he believes it is a strength for the Ethereum community to discuss all issues openly and focus more energy on finding a solution than on defending an issue.

Vitalik Buterin,

Ethereum co-founder, responded to Koppelmann’s regret comments. He told the Gnosis cofounder not to be regretful. “Truth-seeking is more important than ‘not giving the wrong people rhetorical ammunition’ or whatever,” Buterin said. One person responded to Buterin’s statement, “As long truth-seeking results from action and not just comment,”

The Ethereum co-founder replied: “In this case, client teams have been scrambling to understand the situation so they can figure out what to fix for the last couple of hours — Already some good hypotheses.” Buterin’s reply was tethered to a tweet written by Ethereum developer Preston Vanloon who gave his opinion about the reorg situation. Vanloon said:

We suspect this is caused by the implementation of Proposer Boost fork choice has not fully rolled out to the network. This is not a sign of a poor fork choice but rather a non-trivial separation of out-of-date client software.

Ethereum’s reorganization of blockchain follows Vanloon’s statement that The Merge could be implemented by August. However, Buterin was quick to follow up his statement by saying there’s always a “risk of problems” and “delays.” He then said that September and October could be possible as well.

What do you think about Ethereum’s recent seven-block deep reorganization? 1529459296668471297

What do you think of Ethereum’s recent seven-block deep reorganization?

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Gamestop Launches Web3 Ethereum wallet That Leverages Loopring’s ZK-Rollup Tech

Gamestop Launches Web3 Ethereum Wallet That Leverages Loopring’s ZK-Rollup Tech

This week, the consumer electronics and gaming software retailer, Gamestop, has officially revealed the company’s self-custodial, Web3 ethereum wallet. It is currently available in beta and can be accessed via the firm’s web portal. The wallet stores crypto assets as well as non-fungible tokens. Furthermore, the wallet utilizes Loopring’s layer two (L2) ZK-rollup technology to provide users with “fast [and] fairly priced transactions.”

Gamestop Wants to Bring Power to Players via the Company’s Self-Custodial Ethereum Wallet

For quite some time now, it’s been well known that Gamestop was getting into the NFT space and that the gaming software retailer planned on releasing an NFT marketplace. At the end of March 2022, Gamestop explained it had partnered with the Ethereum L2 scaling project Loopring, and noted the company would leverage Loopring’s ZK-rollups.

Now Gamestop has unveiled its non-custodial, Web3 ethereum wallet that uses the ZK-rollup tech for cheaper transactions. It will let gamers store their in-game NFTs but also hold Ethereum-based crypto assets. Gamestop will launch its NFT marketplace in July. It aims to give power to the .”

players.

Gamestop Launches Web3 Ethereum Wallet That Leverages Loopring’s ZK-Rollup Tech

“Gamestop wallet is a secure and easy way to start with Web3. Your GameStop Wallet can be used to purchase, hold, swap or display Ethereum-based assets,” according to the wallet’s description. Gamestop Wallet can be used to buy, hold, swap, display and use Ethereum-based assets.” The wallet’s description also states that it is a self-custodial ethereum vault.

Harnessing the power of Loopring’s ZK-rollup [tech] — an Ethereum Layer 2 scaling protocol – Gamestop gives you low-cost and fast transactions, with Ethereum security, opportunity, and global reach. This allows you to lower gas fees and network congestion while still maintaining control over your funds.

Gamestop’s digital wallet is very similar to Metamask. It also offers a desktop version. The wallet technology was developed by Loopring, but the NFT marketplace will be using Immutable X technology. Gamestop partnered with Immutable X on February 3, 2021, and launched a $100 million NFT fund.

Additionally, the wallet’s privacy policy explains that the software does monitor the user’s data. According to the website, data collected includes “contact information and profile information”, display names, email addresses, profile biography, Ethereum public adres details and Twitter and Reddit usernames.” A iOS version of Gamestop’s wallet will be available soon.

What do you think about Gamestop’s ethereum wallet? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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